PACRA Upgrades the Asset Manager Rating of Lucky Investments Limited.

The rating of Lucky Investments Limited (“Lucky Investments” or the “AMC”) reflects its experienced and visionary leadership, along with strong sponsor support. The current rating upgrade considers the sustained growth in AUMs, increased market share, expansion of the product suite, and advancement in digital capabilities. Strategic geographic expansion and improved profitability achieved within a short operational history also bode well for the assigned rating. The AMC is operating as a full-fledged Islamic asset management company. Lucky Investments is fast becoming a premier choice for Shariah-Compliant investments, aiming for sustainable growth with integrity and innovation. The AMC demonstrated significant growth in its Assets Under Management (AUMs), which reached PKR 131 billion since the launch of its inaugural fund in April 2025, marking an overall increase of approximately 126%. As of Dec'2025, the AMC captured around 3% market share of the total asset management industry (FY25: 2%), while its share in the Islamic asset management segment improved to 6% (FY25: 3.8%). Its flagship offering, the Lucky Islamic Money Market Fund, accounts for approximately 43% of the total AUMs of the AMC, followed by the Lucky Islamic Income Fund. The AMC has acquired the VPS license and launched its first Islamic Pension Fund in Nov’25. It is actively diversifying its product portfolio by working on Pakistan’s first ESG-focused fund, a Capital Protected Fund, and obtaining an RMC (REIT Management Company) license to launch a REIT Fund. The AMC’s client base currently comprises approximately 85% institutional and 15% retail investors(including HNWIs) as of Dec'25. Management intends to gradually increase retail participation in line with its long-term growth strategy by establishing a dedicated retail team and strengthening and leveraging distribution partnerships. Lucky Investments is pursuing a phased geographic expansion strategy, with its Lahore office operational and additional presence planned in Islamabad, Peshawar, and Karachi to strengthen distribution reach and support retail penetration. The top ten investor concentration would also dilute. To enhance outreach and broaden its customer base, the AMC is advancing digital initiatives designed to improve client accessibility and interaction. As part of this effort, the AMC introduced its mobile application in Dec’25, facilitating digital onboarding and end-to-end transaction execution. On the financial side, profit after tax of AMC stood at PKR 91mln at the end of 6MFY26 (3QFY25: PKR 20mln), primarily due to an increase in fee and commission income. The equity of the AMC stood at PKR 604mln at the 6MFY26 (3QFY25: PKR 508mln). The sponsors have instituted a sound governance framework, where their own presence on the Board and Committees lends much-needed and desired confidence in the AMC. The AMC is benefiting from its relationships across the corporate and financial spectrum of the economy. The management team is well entrenched in the market and known for its previous track record of success. The focus of the management is to lay a strong foundation, which will play a fundamental role in the future performance of the entity. Many of the actions that the management has taken reflect their aptitude towards professionalism, higher industry standards, and innovation. This is unlocking sustained growth for the AMC.
The rating depends on the AMC's ability to strengthen its market position regarding AUMs, sustain superior fund performance, strategic branch expansion, and strengthen profitability. Continued improvement in investor granularity remains important, while deeper retail penetration through digital channels is expected to provide further support.

About the Entity
Lucky Investments Limited holds licenses from the SECP to operate as a Non-Banking Finance Company (NBFC), authorized to provide both asset management and investment advisory services. Currently, the AMC is owned (70%) by YB Pakistan, while the remaining 30% is held by Mr. Muhammad Shoaib, CFA who is a seasoned professional with over 35 years of capital markets experience. The seven member Board of the AMC is chaired by Mr. Muhammad Ali Tabba, who is well known in the market for his towering successes as an entrepreneur and businessman.